þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Wisconsin | 39-0178960 | |
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
January 31, 2009
July 31, 2008
(Unaudited)
$
185,091
$
258,355
191,335
262,461
65,646
75,665
18,499
21,187
37,537
37,767
121,682
134,619
43,577
43,650
541,685
699,085
719,431
789,107
118,532
144,791
27,196
25,943
15,815
21,381
6,183
6,490
92,579
98,646
271,541
282,232
7,248
6,040
377,551
393,408
224,455
223,202
153,096
170,206
$
1,575,755
$
1,850,513
$
71,327
$
118,209
50,339
82,354
6,487
10,234
1,603
21,523
46,689
54,810
21,429
21,431
197,874
308,561
457,143
457,143
55,066
63,001
710,083
828,705
513
513
35
35
296,342
292,769
654,034
639,059
(70,917
)
(33,234
)
(9,427
)
128,161
(4,908
)
(5,495
)
865,672
1,021,808
$
1,575,755
$
1,850,513
Table of Contents
Three Months Ended January 31,
Six Months Ended January 31,
(Unaudited)
(Unaudited)
Percentage
Percentage
2009
2008
Change
2009
2008
Change
$
266,449
$
364,124
(26.8
%)
$
644,766
$
744,258
(13.4
%)
140,307
189,101
(25.8
%)
337,478
381,567
(11.6
%)
126,142
175,023
(27.9
%)
307,288
362,691
(15.3
%)
8,503
10,071
(15.6
%)
17,559
19,050
(7.8
%)
93,613
122,508
(23.6
%)
207,870
242,859
(14.4
%)
19,408
N/A
21,047
N/A
121,524
132,579
(8.3
%)
246,476
261,909
(5.9
%)
4,618
42,444
(89.1
%)
60,812
100,782
(39.7
%)
(1,698
)
2,269
(174.8
%)
154
2,387
(93.5
%)
(6,314
)
(6,747
)
(6.4
%)
(12,675
)
(13,467
)
(5.9
%)
(3,394
)
37,966
(108.9
%)
48,291
89,702
(46.2
%)
756
11,276
(93.3
%)
15,331
26,642
(42.5
%)
$
(4,150
)
$
26,690
(115.5
%)
$
32,960
$
63,060
(47.7
%)
$
(0.08
)
$
0.49
(116.3
%)
$
0.62
$
1.16
(46.6
%)
$
(0.08
)
$
0.48
(116.7
%)
$
0.62
$
1.14
(45.6
%)
$
0.17
$
0.15
13.3
%
$
0.34
$
0.30
13.3
%
$
(0.08
)
$
0.49
(116.3
%)
$
0.61
$
1.14
(46.5
%)
$
(0.08
)
$
0.48
(116.7
%)
$
0.60
$
1.13
(46.9
%)
$
0.17
$
0.15
13.3
%
$
0.32
$
0.28
14.3
%
52,350
54,510
52,821
54,430
52,350
55,228
53,144
55,175
Table of Contents
Six Months Ended
January 31,
(Unaudited)
2009
2008
$
32,960
$
63,060
27,193
29,669
1,916
4,244
6,382
1,274
(517
)
42,156
7,080
(548
)
7,571
(3,648
)
(7,339
)
(64,413
)
(17,117
)
(17,428
)
(1,266
)
(1,689
)
325
22,017
87,848
(24,552
)
3,514
(1,405
)
(5,798
)
(10,350
)
29,550
(12,948
)
(14,358
)
1,998
(3,259
)
(8,841
)
(28,767
)
(17,985
)
(16,285
)
1,284
7,980
(2
)
(9
)
(40,267
)
847
4,093
(56,123
)
(4,221
)
(30,317
)
733
(73,264
)
55,593
258,355
142,846
$
185,091
$
198,439
$
12,563
$
13,153
27,384
26,381
$
$
17,279
(6,371
)
13,644
$
$
24,552
Table of Contents
Americas
Europe
Asia-Pacific
Total
$
412,977
$
189,650
$
186,480
$
789,107
275
(52
)
(2,713
)
(2,490
)
(6,673
)
(42,446
)
(18,067
)
(67,186
)
$
406,579
$
147,152
$
165,700
$
719,431
Table of Contents
January 31, 2009
July 31, 2008
Weighted
Weighted
Average
Average
Amortization
Gross
Amortization
Gross
Period
Carrying
Accumulated
Net Book
Period
Carrying
Accumulated
Net Book
(Years)
Amount
Amortization
Value
(Years)
Amount
Amortization
Value
15
$
8,537
$
(6,714
)
$
1,823
15
$
8,603
$
(6,592
)
$
2,011
7
7,192
(4,512
)
2,680
7
8,079
(4,688
)
3,391
7
134,831
(63,703
)
71,128
7
151,704
(59,101
)
92,603
4
10,595
(8,302
)
2,293
4
12,222
(8,446
)
3,776
4
3,296
(3,293
)
3
4
3,299
(3,294
)
5
N/A
40,605
40,605
N/A
43,005
43,005
$
205,056
$
(86,524
)
$
118,532
$
226,912
$
(82,121
)
$
144,791
Table of Contents
Three Months Ended January 31,
Six Months Ended January 31,
2009
2008
2009
2008
$
(4,150
)
$
26,690
$
32,960
$
63,060
(823
)
(846
)
(11
)
(13
)
$
(4,150
)
$
26,690
$
32,126
$
62,201
52,350
54,510
52,821
54,430
718
323
745
52,350
55,228
53,144
55,175
$
(0.08
)
$
0.49
$
0.62
$
1.16
$
(0.08
)
$
0.48
$
0.62
$
1.14
$
(0.08
)
$
0.49
$
0.61
$
1.14
$
(0.08
)
$
0.48
$
0.60
$
1.13
Table of Contents
Corporate
And
Americas
Europe
Asia-Pacific
Sub-Totals
Eliminations
Totals
$
122,970
$
87,201
$
56,278
$
266,449
$
266,449
9,536
1,286
5,070
15,892
(15,892
)
22,041
22,945
4,122
49,108
(2,607
)
46,501
$
156,621
$
122,615
$
84,888
$
364,124
$
364,124
15,888
2,261
6,247
24,396
(24,396
)
32,036
31,067
12,660
75,763
(2,347
)
73,416
$
283,886
$
195,416
$
165,464
$
644,766
$
644,766
23,917
2,797
13,058
39,772
(39,772
)
57,564
54,084
26,523
138,171
(4,914
)
133,257
$
331,396
$
231,529
$
181,333
$
744,258
$
744,258
31,094
5,253
12,461
48,808
(48,808
)
76,142
60,967
32,050
169,159
(4,583
)
164,576
Three months ended:
Six months ended:
January 31,
January 31,
2009
2008
2009
2008
$
49,108
$
75,763
$
138,171
$
169,159
(2,607
)
(2,347
)
(4,914
)
(4,583
)
(22,475
)
(30,972
)
(51,398
)
(63,794
)
(19,408
)
(21,047
)
(1,698
)
2,269
154
2,387
(6,314
)
(6,747
)
(12,675
)
(13,467
)
(3,394
)
37,966
48,291
89,702
(756
)
(11,276
)
(15,331
)
(26,642
)
$
(4,150
)
$
26,690
$
32,960
$
63,060
Table of Contents
Six Months Ended
Six Months Ended
January 31, 2009
January 31, 2008
Performance-
Performance-
Service-Based
Based Option
Service-Based
Based Option
Black-Scholes Option Valuation Assumptions
Option Awards
Awards
Option Awards
Awards
5.97
N/A
6.04
6.57
36.01
%
N/A
32.05
%
33.68
%
1.75
%
N/A
1.62
%
1.58
%
2.03
%
N/A
3.44
%
4.66
%
$
21.31
N/A
$
38.22
$
35.35
$
21.31
N/A
$
38.22
$
35.35
$
6.32
N/A
$
11.94
$
12.83
Table of Contents
Weighted
Average
Weighted
Remaining
Aggregate
Average
Contractual
Intrinsic
Options
Shares
Exercise Price
Term
Value
3,985,205
$
29.43
605,000
$
21.31
(89,434
)
$
16.03
(229,160
)
$
35.20
4,271,611
$
28.96
6.8
$
6,102
2,885,483
$
27.27
5.6
$
5,859
Table of Contents
a)
Acquisition costs will generally be expensed as incurred;
b)
Noncontrolling interests in subsidiaries will be valued at fair value at the acquisition
date and classified as a separate component of equity;
c)
Liabilities related to contingent consideration will be re-measured at fair value in each
subsequent reporting period;
d)
Restructuring costs associated with a business combination will generally be expensed
after the acquisition date; and
e)
In-process research and development will be recorded at fair value as an indefinite-lived
intangible asset at the acquisition date.
Table of Contents
Employee
Asset
Related
Write-offs
Other
Total
$
$
$
$
1,058
335
246
1,639
(335
)
(335
)
(595
)
(116
)
(711
)
$
463
$
$
130
$
593
17,035
1,213
1,160
19,408
(368
)
(1,213
)
(1,581
)
(5,486
)
(451
)
(5,937
)
$
11,644
$
$
839
$
12,483
Table of Contents
Acquisitions
Segment
Date Completed
Europe
November 2007
Americas
March 2008
Table of Contents
Table of Contents
Table of Contents
Corporate
Asia-
and
(Dollars in thousands)
Americas
Europe
Pacific
Subtotals
Eliminations
Total
$
122,970
$
87,201
$
56,278
$
266,449
$
$
266,449
156,621
122,615
84,888
364,124
364,124
$
283,886
$
195,416
$
165,464
$
644,766
$
$
644,766
331,396
231,529
181,333
744,258
744,258
(19.5
%)
(16.9
%)
(28.9
%)
(20.8
%)
(20.8
%)
(2.6
%)
(12.0
%)
(4.8
%)
(6.2
%)
(6.2
%)
0.6
%
0.0
%
0.0
%
0.2
%
0.2
%
(21.5
%)
(28.9
%)
(33.7
%)
(26.8
%)
(26.8
%)
(13.5
%)
(11.5
%)
(7.7
%)
(11.5
%)
(11.5
%)
(1.4
%)
(7.1
%)
(1.1
%)
(3.1
%)
(3.1
%)
0.6
%
3.0
%
0.0
%
1.2
%
1.2
%
(14.3
%)
(15.6
%)
(8.8
%)
(13.4
%)
(13.4
%)
$
22,041
$
22,945
$
4,122
$
49,108
$
(2,607
)
$
46,501
32,036
31,067
12,660
75,763
(2,347
)
73,416
(31.2
%)
(26.1
%)
(67.4
%)
(35.2
%)
11.1
%
(36.7
%)
$
57,564
$
54,084
$
26,523
$
138,171
$
(4,914
)
$
133,257
76,142
60,967
32,050
169,159
(4,583
)
164,576
(24.4
%)
(11.3
%)
(17.2
%)
(18.3
%)
7.2
%
(19.0
%)
Three months ended:
Six months ended:
January 31,
January 31,
January 31,
January 31,
2009
2008
2009
2008
$
49,108
$
75,763
$
138,171
$
169,159
(2,607
)
(2,347
)
(4,914
)
(4,583
)
(22,475
)
(30,972
)
(51,398
)
(63,794
)
(19,408
)
(21,047
)
(1,698
)
2,269
154
2,387
(6,314
)
(6,747
)
(12,675
)
(13,467
)
(3,394
)
37,966
48,291
89,702
(756
)
(11,276
)
(15,331
)
(26,642
)
$
(4,150
)
$
26,690
$
32,960
$
63,060
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
23
24
25
Table of Contents
Total Number of
Maximum Number
Average
Shares Purchased
of Shares that May
Total Number of
Price Paid
as Part of Publicly
Yet Be Purchased
Shares Purchased
per Share
Announced Plans
Under the Plans
15,000
$
18.18
15,000
485,000
178,800
$
19.50
178,800
306,200
$
306,200
193,800
$
19.39
193,800
306,200
Table of Contents
Change of Control Agreement, amended as of December 23, 2008, entered into with Frank M. Jaehnert
Form of Change of Control Agreement, amended as of December 23, 2008, entered into with Thomas
J. Felmer, Allan J. Klotsche, Peter C. Sephton, Robert L. Tatterson, and Matthew O. Williamson
Form of Change of Control Agreement, amended as of December 23, 2008, entered into with Patrick
S. Ference and Kathleen Johnson
Form of Amendment, dated March 4, 2009, to granting agreement for performance-based stock
options issued on August 2, 2004 to Frank M. Jaehnert, Thomas J. Felmer, Peter C.Sephton,
Matthew O. Williamson, and Allan J. Klotsche
Rule 13a-14(a)/15d-14(a) Certification of Frank M. Jaehnert
Rule 13a-14(a)/15d-14(a) Certification of Thomas J. Felmer
Section 1350 Certification of Frank M. Jaehnert
Section 1350 Certification of Thomas J. Felmer
BRADY CORPORATION
/s/ F. M. Jaehnert
President & Chief Executive Officer
/s/ Thomas J. Felmer
Thomas J. Felmer
Senior Vice President & Chief Financial Officer
(Principal Financial Officer)
-2-
-3-
|
If to the Executive: | Frank M. Jaehnert | ||||
|
W68 N1068 Kensington Avenue | |||||
|
Cedarburg, Wisconsin 53012 | |||||
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||||||
|
If to the Corporation: | Brady Corporation | ||||
|
6555 West Good Hope Road | |||||
|
Milwaukee, Wisconsin 53223 | |||||
|
Attention: Corporate Secretary |
-4-
-5-
/s/ Frank M. Jaehnert | ||||||
Executive Frank M. Jaehnert | ||||||
|
||||||
Brady Corporation | ||||||
|
||||||
|
By: |
/s/ Hoyt R. Stastney
|
||||
Hoyt R. Stastney, Secretary |
-6-
-2-
-3-
|
If to the Executive: | [Name of Executive] | ||||
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|||||
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|||||
|
|
|||||
|
||||||
|
If to the Corporation: | Brady Corporation | ||||
|
6555 West Good Hope Road | |||||
|
Milwaukee, Wisconsin 53223 | |||||
|
Attention: Corporate Secretary |
-4-
-5-
|
* | |||||
Executive | ||||||
|
||||||
Brady Corporation | ||||||
|
||||||
|
By: |
/s/ Hoyt R. Stastney
|
* | This form of agreement shall be deemed to include conformed signatures of the following individuals, all of whom executed the agreement in substantially similar form: Thomas J. Felmer, Allan J. Klotsche, Peter C. Sephton, Robert L. Tatterson and Matthew O. Williamson. |
-6-
-2-
-3-
|
If to the Executive: | [Name of Executive] | ||||
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|||||
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|||||
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||||||
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If to the Corporation: | Brady Corporation | ||||
|
6555 West Good Hope Road | |||||
|
Milwaukee, Wisconsin 53223 | |||||
|
Attention: Corporate Secretary |
-4-
-5-
|
* | |||||
Executive | ||||||
|
||||||
Brady Corporation | ||||||
|
||||||
|
By: |
/s/ Hoyt R. Stastney
|
* | This form of agreement shall be deemed to include conformed signatures of the following individuals, all of whom executed the agreement in substantially similar form: Patrick S. Ference and Kathleen Johnson. |
-6-